SwissBorg Hit by $41M Solana Crypto Theft Due to Kiln API Breach

TLDR

• SwissBorg lost $41M in Solana after a staking partner’s API was compromised.
• Affected users account for 1% of SwissBorg’s customer base and assets.
• The company is working with security experts to recover the stolen funds.
• Daily operations remain unaffected, with no other Earn Programs impacted.

SwissBorg, a Switzerland-based cryptocurrency wealth management platform, reported a significant loss of about $41 million worth of Solana (SOL) on September 8, 2025. The theft occurred due to a security breach involving a staking partner, Kiln, rather than an issue within SwissBorg’s own app or infrastructure. This breach exploited a compromised API from Kiln, which was used to power SwissBorg’s Solana Earn Program.

In a video posted on social media, a spokesperson from SwissBorg explained that while the breach was severe, it did not affect other parts of the platform, including other Earn Programs or funds stored in the company’s proprietary app. Despite this, the company confirmed that approximately 192,600 SOL tokens, valued at $41.3 million, were stolen during the attack. The breach was quickly isolated, and the company is working to address the issue.

Kiln API Compromise Leads to Solana Theft

The breach specifically targeted Kiln’s API, which allowed hackers to manipulate the communication between systems and siphon off tokens. The Solana Earn Program, designed to help users earn rewards by staking their Solana, was particularly vulnerable due to this flaw in the API.

SwissBorg clarified that only 1% of its customer base, which corresponds to 2% of its total assets under management, was affected by the hack.

Although the loss was substantial, SwissBorg emphasized that the funds involved were part of a separate staking program and did not impact other funds or products. CEO Cyrus Fazel addressed the issue in an X Space, reassuring users that the company’s financial stability remained intact and daily operations were not affected.

Company Plans to Reimburse Affected Users

SwissBorg has vowed to reimburse all affected users, using its own Solana treasury reserves to recover a significant portion of the stolen funds. The company has engaged with white-hat hackers and security experts to track the stolen tokens and recover them as quickly as possible.

The company also indicated that it was collaborating with international agencies and exchanges to help trace and block the stolen funds.

The stolen assets were tracked to a Solana wallet that has since been flagged as “SwissBorg Exploiter” on Solscan, and the company has advised users to avoid interacting with this address during the investigation. Although the attack was a significant setback, SwissBorg reaffirmed its commitment to making users whole and continuing to provide secure financial services.

Broader Crypto Security Concerns and Impact on the Industry

While the theft has affected SwissBorg, the company is confident that the impact will be contained to the Solana Earn Program. No other products, including the broader suite of crypto yield services, were compromised. The breach has raised concerns about the security of APIs in the crypto space, as similar vulnerabilities could affect other platforms in the future.

In addition to the SwissBorg breach, the cryptocurrency industry has faced other security concerns recently.

A massive supply chain attack involving JavaScript libraries and NPM packages was also reported, highlighting the growing threats within the decentralized ecosystem. Experts, including Ledger’s CTO Charles Guillemet, have urged users to exercise caution, especially when making on-chain transactions, to avoid potential vulnerabilities.

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